Immunoprecise(IPA) - 2025 Q4 - Annual Report

Executive Summary ImmunoPrecise Antibodies reported record FY2025 and Q4 revenues, improved profitability, and significant progress in AI-driven drug discovery and strategic realignment Financial Highlights (FY25 & Q4) IPA achieved record revenues for FY2025 and Q4, alongside record Q4 Adjusted EBITDA and strong gross margin performance, driven by exceptional BioStrand segment growth Fiscal Year 2025 & Fourth Quarter Financial Highlights (CAD in millions) | Metric | FY2025 | Q4 FY2025 | | :-------------------------------- | :----- | :-------- | | Record Revenue | $24.5 | $7.0 | | Record Adjusted EBITDA (loss) | N/A | ($0.3) | | Q4 Gross Margin | N/A | 64% | | BioStrand Segment Growth (YoY) | >180% | N/A | | BioStrand % of Total Annual Revenue | >5% | N/A | Recent Corporate Highlights IPA advanced its AI-driven drug discovery platforms, validated LENSai™, identified a universal dengue vaccine epitope, secured a strategic partnership, and strengthened governance - LENSai™ platform demonstrated in silico epitope mapping results on par with X-ray crystallography, delivering structural insights in hours[4] - HYFT®-powered LENSai platform identified a highly conserved epitope across all four dengue virus serotypes, a key milestone for a potential universal dengue vaccine[4] - IPA's AI-designed GLP-1 peptides outperformed or matched semaglutide in independent receptor activation studies[4] - Entered into a strategic USD $8M – $10M partnership for advancing Antibody-Drug Conjugates and bispecific antibodies for cancer treatment[4] - Realigned internal R&D strategy to focus on launching an AI-powered therapeutic pipeline, reinforcing a shift toward a bio-native AI drug discovery model[4] - Appointed industry veteran Jon Lieber to its Board of Directors and Jeff Fried to its Advisory Board, enhancing financial oversight and AI platform capabilities[9] - Regained compliance with Nasdaq minimum bid price requirement[9] CEO Commentary CEO Dr. Jennifer Bath highlighted FY2025 as a record year with strong financials and AI innovation, emphasizing a strategic refocus on AI-based product development and operational streamlining - Fiscal 2025 was a record-setting year with highest-ever annual and fourth quarter revenues, significantly improved gross margins, and one of the strongest adjusted EBITDA performances[5] - BioStrand segment grew by over 180% in Fiscal 2025, validating the strength of the AI-driven pipeline[5] - Company is poised to refocus on AI-based product development utilizing the LENSai platform and anticipates completing the divestiture of its Dutch subsidiary to streamline operations[5] Fourth Quarter 2025 Financial Results IPA reported an 8% increase in Q4 FY2025 revenue, significantly improved gross margin to 64%, and narrowed its net loss and Adjusted EBITDA loss, reflecting enhanced operating efficiency Revenue and Gross Profit (Q4) IPA's Q4 FY2025 revenue increased 8% to $7.0 million, with gross profit rising 45.2% to $4.5 million and gross margin expanding to 64%, driven by BioStrand revenues Fourth Quarter Financial Performance (CAD in thousands) | Metric | Q4 FY2025 | Q4 FY2024 | Change (YoY) | | :---------------- | :-------- | :-------- | :----------- | | Revenue | $7,000 | $6,500 | +8% | | Gross Profit | $4,500 | $3,100 | +45.2% | | Gross Margin | 64% | 48% | +16 ppts | Operating Expenses (Q4) Q4 FY2025 saw a decrease in R&D and general and administrative expenses, while sales and marketing expenses slightly increased due to digital campaign investments Fourth Quarter Operating Expenses (CAD in thousands) | Expense Category | Q4 FY2025 | Q4 FY2024 | Change (YoY) | | :----------------------- | :-------- | :-------- | :----------- | | Research and development | $1,089 | $1,260 | -13.6% | | Sales and marketing | $1,033 | $910 | +13.5% | | General and administrative | $3,706 | $4,119 | -10.1% | | Operating loss (excl. amortization & non-recurring) | ($1,400) | ($3,200) | +56.3% | Net Loss and Adjusted EBITDA (Q4) IPA significantly narrowed its Q4 FY2025 net loss to $2.2 million and improved Adjusted EBITDA loss to $0.3 million, reflecting enhanced operating efficiency Fourth Quarter Net Loss and Adjusted EBITDA (CAD in thousands) | Metric | Q4 FY2025 | Q4 FY2024 | Change (YoY) | | :---------------- | :-------- | :-------- | :----------- | | Net Loss | ($2,161) | ($17,610) | +87.7% | | Adjusted EBITDA | ($316) | ($1,694) | +81.3% | Full Fiscal Year 2025 Financial Results For FY2025, IPA maintained stable revenue, expanded gross margin to 55%, managed operating expenses, and reported a net loss of $30.2 million with $10.8 million in cash and marketable securities Revenue and Gross Profit (FY) IPA's FY2025 revenue remained stable at $24.5 million, while gross profit increased 12.4% to $13.5 million and gross margin expanded to 55%, driven by BioStrand Full Fiscal Year Financial Performance (CAD in thousands) | Metric | FY2025 | FY2024 | Change (YoY) | | :---------------- | :-------- | :-------- | :----------- | | Revenue | $24,520 | $24,518 | +0.01% | | Gross Profit | $13,548 | $12,053 | +12.4% | | Gross Margin | 55% | 49% | +6 ppts | Operating Expenses (FY) FY2025 saw increased R&D and sales and marketing expenses, while general and administrative expenses decreased, reflecting strategic investments and cost discipline Full Fiscal Year Operating Expenses (CAD in thousands) | Expense Category | FY2025 | FY2024 | Change (YoY) | | :----------------------- | :-------- | :-------- | :----------- | | Research and development | $4,943 | $4,043 | +22.3% | | Sales and marketing | $4,298 | $3,543 | +21.3% | | General and administrative | $14,735 | $15,592 | -5.5% | | Operating loss (excl. amortization & non-recurring) | ($10,400) | ($11,100) | +6.3% | Net Loss and Adjusted EBITDA (FY) IPA's FY2025 net loss increased to $30.2 million, or $(0.91) per share, with Adjusted EBITDA loss slightly increasing to $5.7 million Full Fiscal Year Net Loss and Adjusted EBITDA (CAD in thousands) | Metric | FY2025 | FY2024 | Change (YoY) | | :---------------- | :-------- | :-------- | :----------- | | Net Loss | ($30,234) | ($26,115) | -15.8% | | Basic and Diluted EPS | ($0.91) | ($1.02) | +10.8% | | Adjusted EBITDA | ($5,689) | ($5,501) | -3.4% | Cash and Marketable Securities (FY) As of April 30, 2025, ImmunoPrecise Antibodies Ltd. reported total cash, cash equivalents, and marketable securities, including restricted cash, of $10.8 million Cash Position (CAD in thousands) | Metric | As of April 30, 2025 | | :------------------------------------------ | :------------------- | | Total Cash, Cash Equivalents, and Marketable Securities (including restricted cash) | $10,800 | Company Information & Disclosures This section provides an overview of ImmunoPrecise Antibodies as an AI-driven biotherapeutic company, details of its financial results conference call, and important disclosures regarding forward-looking statements and non-IFRS financial measures About ImmunoPrecise Antibodies Ltd. ImmunoPrecise Antibodies Ltd. (IPA) is an AI-driven biotherapeutic research and life science company specializing in the discovery and development of customized and novel antibodies, leveraging proprietary processes and innovative approaches through several subsidiaries across North America and Europe - IPA is an AI-driven biotherapeutic research, technology, and life science company focused on discovering and developing customized and novel antibodies[18] - The company utilizes proprietary and patented processes, procedures, and innovative approaches to antibody discovery, development, and production[18] - IPA operates through subsidiaries including Talem Therapeutics LLC, BioStrand BV, ImmunoPrecise Antibodies (Canada) Ltd., and ImmunoPrecise Antibodies (Europe) B.V[18] Conference Call and Webcast Details ImmunoPrecise Antibodies Ltd. hosted a live conference call and webcast on July 29, 2025, to discuss its financial results and provide a corporate update, with details for participant dial-in and webcast access provided - A live conference call and webcast were held on Friday, July 29, 2025, at 10:30 AM ET[15] - Participants could join via allocated dial-in numbers or through a webcast link available on the company's IR pages[16] Forward-Looking Statements and Non-IFRS Measures This section outlines forward-looking statements concerning IPA's future outlook, strategic partnerships, and AI-driven growth, alongside the use and definition of non-IFRS financial measures like Adjusted EBITDA - Forward-looking statements include those related to operational and financial outlook, strategic partnerships, projected growth in AI-driven revenues and margins, commercialization of new technologies, and the ability to drive sustainable profitability[21] - These statements are based on management's current expectations and assumptions but involve known and unknown risks, uncertainties, and other factors that may cause actual results to differ materially[24] - The company uses non-IFRS financial measures, specifically Adjusted EBITDA, as supplemental indicators of financial and operating performance[22] - Adjusted EBITDA is defined as operating earnings before taxes, amortization, depreciation, accretion, asset impairment charges, foreign exchange gain/loss, interest and other income, and share-based compensation[23] Consolidated Financial Statements This section presents IPA's Consolidated Statements of Comprehensive Loss, Financial Position, and Cash Flows for FY2025 and Q4, detailing financial performance, asset and liability structure, and cash movements Consolidated Statements of Comprehensive Loss The Consolidated Statements of Comprehensive Loss provide a detailed breakdown of IPA's revenues, cost of sales, gross profit, operating expenses, and net loss for the three and twelve months ended April 30, 2025, and 2024, including other comprehensive income/loss components Consolidated Statements of Comprehensive Loss (CAD in thousands, except share data) | Metric | Q4 FY2025 | Q4 FY2024 | FY2025 | FY2024 | | :-------------------------------- | :-------- | :-------- | :------- | :------- | | REVENUE | $6,981 | $6,459 | $24,520 | $24,518 | | COST OF SALES | $2,521 | $3,351 | $10,972 | $12,465 | | GROSS PROFIT | $4,460 | $3,108 | $13,548 | $12,053 | | Research and development | $1,089 | $1,260 | $4,943 | $4,043 | | Sales and marketing | $1,033 | $910 | $4,298 | $3,543 | | General and administrative | $3,706 | $4,119 | $14,735 | $15,592 | | Impairment of Goodwill | — | $11,161 | — | $11,161 | | Impairment of Intangible assets | — | $3,870 | $21,184 | $3,870 | | NET LOSS FOR THE PERIOD | ($2,161) | ($17,610) | ($30,234) | ($26,115) | | COMPREHENSIVE LOSS FOR THE PERIOD | ($1,568) | ($17,113) | ($29,095) | ($26,728) | | LOSS PER SHARE – BASIC AND DILUTED | ($0.05) | ($0.66) | ($0.91) | ($1.02) | Consolidated Statements of Financial Position The Consolidated Statements of Financial Position present IPA's assets, liabilities, and shareholders' equity as of April 30, 2025, and 2024, showing a decrease in total assets and shareholders' equity year-over-year, while total liabilities also decreased Consolidated Statements of Financial Position (CAD in thousands) | Metric | April 30, 2025 | April 30, 2024 | | :-------------------------- | :------------- | :------------- | | Total assets | $44,441 | $59,988 | | Total liabilities | $20,815 | $24,310 | | Total shareholders' equity | $23,626 | $35,678 | Consolidated Statements of Cash Flows The Consolidated Statements of Cash Flows detail the cash generated from or used in operating, investing, and financing activities for the fiscal years ended April 30, 2025, and 2024, with an increase in cash during FY2025 primarily driven by financing activities Consolidated Statements of Cash Flows (CAD in thousands) | Activity | FY2025 | FY2024 | | :-------------------------------- | :------- | :------- | | Net cash used in operating activities | ($6,410) | ($3,184) | | Net cash used in investing activities | ($799) | ($1,563) | | Net cash provided by financing activities | $14,893 | $1,021 | | Increase (decrease) in cash during the period | $7,684 | ($3,726) | | Cash – end of the period | $10,791 | $3,545 |